Sonic Automotive posted a $25.9 million net income in fourth quarter of 2011

Article by Christian A., on March 1, 2012

The profits of Sonic Automotive Inc. in the fourth quarter had increased as the demand for the new and used vehicles did better than the industry. When adjusted for one-time gains and losses, the net income of the No. 3 auto dealer group in the U.S. was $25.9 million compared with $16.5 million for the same quarterly period last year.

Its revenue increased by 12% from last year to $2.07 billion, slightly higher than the $2.06 billion that analysts had forecasted. The company said that its new-vehicle retail sales revenue rose by16% in the quarter to $1.1 billion. In a statement, Jeff Dyke, Sonic's executive vice president of operations, said that its new and used volume growth still surpasses industry averages as its team uses its “operating playbook strategy.”

He added that the team is focused on used car processes and this has led to double-digit volume growth for the past 11 straight quarters. Sonic then posted a 15% compound annual growth rate over the past 4 years. When one-time items are excluded, Sonic posted earnings of 43 cents a share, exceeding what analysts polled by Thomson Reuters I/B/E/S had predicted by five cents.

For the entire year, Sonic said it posted an adjusted net income of $80.8 million compared with 2010 earnings of $51.5 million. It recorded total revenue of $7.9 billion in 2011 versus $6.9 billion in 2010. It also provided an outlook for its 2012 earnings that, at the mid-point, exceeded the expectations of Wall Street. For 2012, Sonic anticipates U.S. new vehicle industry sales of around 13.5 million vehicles.

Because of this, Sonic expects that its 2012 earnings from continuing operations will be in the range of $1.55 to $1.65 a share. The mid-point of this range at $1.60 is higher than the $1.57 that analysts had expected. On the Automotive News list of the top 125 U.S. dealership groups, Sonic ranks No. 3 with new vehicle sales of 99,565 in 2010.

If you liked the article, share on:

Topics: sonic

Comments

Recommended

Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries